Reliance Industries Ltd said on Wednesday it has secured approval for doubling output from its gas field in KG basin at an enhanced investment of $5.2 billon.
"The directorate general of hydrocarbons approved addendum to the initial development plan for the deepwater Block KG-DWN-98/3 (KG-D6). The capital expenditure for initial phase of development to produce 80 mmscmd of gas is $5.2 billion," RIL said in a statement.
Originally, the company had planned to invest $2.47 billion to produce 40 mmscmd gas. However, with rig prices going up and more reserves being found in the block the company raised the capex and the planned output.
Reliance will invest $5.2 billion in Phase-I of the development involving drilling of 22
wells. Together with the Phase-II committment of 28 additional wells, the total project cost would be $8.84 billion.
"The development plan envisages commencement of delivery of first gas by second half of 2008-09," the statement said.
The block KG-D6 in Krishna Godavari basin in the Bay of Bengal was awarded to RIL and NIKO Resources of Canada under NELP-I bidding round. RIL, as operator holds 90 per cent in the block and NIKO the remaining 10 per cent.
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